Holes in the ground, towers in the sky...

If cranes on the horizon are a sign of economic prosperity, as former Queensland premier Joh Bjelke-Petersen used to argue, Melbourne has never been in better shape.

In the past year alone, the green light has been given to development worth $3.3 billion in Melbourne's CBD.

According to the Department of Infrastructure, the Bracks Government has approved city construction worth more than $6 billion. That figure excludes Federation Square and the developments in the Southbank and Docklands precincts.

Since October 1999, permits have been issued for 11 projects valued at more than $100 million (all values are the developers' estimates; actual completed costs may be much higher).

"They are astonishing figures," said Planning Minister Mary Delahunty on Friday. "We have a very strong economy at the moment, and that's reflected in the building figures. There's a substantial change going on, as we renovate the centre of Melbourne for the 21st century."");document.write("

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The biggest facelift in town is Grollo's mixed-use development on the Queen Victoria site. Occupying a block, the QV project will give the CBD its first full-scale supermarket six new laneways and almost 600 apartments. The estimated cost is $600 million.

The Southern Cross Hotel site, where work has finally started after years of delays, is next on the list, with a proposed budget of $300 million for its two office towers.

The big question now about the building activity is whether it is sustainable. "I've been asking that question for most of this year, as we've had month after month of record approvals," said Ms Delahunty. "I don't know the answer."

The minister rejected any suggestion that the possibility of an election might have sped up a few approvals. "We have a political cycle, and you can judge for yourself where we are in that. But these are big investments. Queen Victoria, the RACV building. They've been in planning for years and years, but this government made them happen."

[PI9017] The first stage of Federation Square will open within a month, with the last of 1005 "megapanels" fixed to the facade last week.